Carbon Markets the Best Route to Low-Carbon Global Economies

In a new report, Climate and Carbon: Aligning Prices and Policies, the OECD condemns fossil fuel subsidies and tax exemptions, and posits carbon markets as most effective mechanism for transitioning to a low-carbon economy and tackling climate change. The report, drawing on evidence from 15 countries (but not including Canada), points out that “carbon markets are more than 16 times cheaper at cutting greenhouse gases than renewable subsidies paid to power producers”. However, carbon markets worldwide are being undermined by a lack of coherence in government approaches to carbon pricing and financial support for fossil fuels. According to OECD Secretary-General Angel Gurría, limiting global temperature increase to 2ºC requires sending consistent carbon price signals to consumers, producers and investors alike.Climate and Carbon: Aligning Prices and Policies is available at:http://www.oecd.org/environment/climate-carbon.htm

 

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